Rachel Lee

07 Jul 2022

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Buying a condo soon and will wipe out CPF OA balance for downpayment. Should I pay for the monthly mortgage in cash only (build up my OA balance) should I use CPF for the monthly mortgage?

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1M45

Edited 07 Jul 2022

Opinon

Honestly, if your cpf OA is wipe out you probably over-leverage.

Becoz u have no safety net without cpf. If u sudden lose of job, it will be very challenging to pay the monthly instalment, unless you have very thick bank account.

Answering question

Personally i think, u should pay mostly by cash. Build up your CPF 1st.

FYI: u can use mixture of cash and CPF to pay the instalment.

Reason if u sudden loss of job then you can use CPF to pay. Playing with debt, you must make sure u have very strong holding power.

My personal safety net for reference

Let tenant pay 1st
If no tenant, use my salary pay
If loss job, use my previous profit from selling the house (housing fund)
If "housing fund" deplete, then use cpf.

4 Layers of protection.

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